JAMMU AND KASHMIR BANK LIMITED vs M/S THE BLUE FOX on 8 July 2026

ORDER

1. On 29.06.2020, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹6,43,22,662.88p with interest against M/s The Blue Fox (defendants) in the Additional District Judge, (Bank Cases), Srinagar. However, vide order dated 02.11.2022, Additional District Judge, (Bank Cases), Jammu, transferred this suit to DRT-I, Chandigarh.

2. Bank’s case is that on 03.06.2010, it had granted C.C. Limit of ₹72.00Lacs and a loan of Rs.20.00Lacs to defendant No.1 through its proprietor defendant No.2 for business purpose. To secure the loan, Defendant no.2 mortgaged his property(ies) (fully detailed in para No.3 of the application). Defendant No.3 and Dr. Imran Rahim s/o Sh. Abdul

Rahim Bhat stood as guarantors for the aforementioned C.C. Limit and Bank guarantee. To secure both the loan facilities, Defendant No.2 being the proprietor of defendant no.1 mortgaged his property(ies) (fully detailed in para No.3 of the application). 2A. Again on 05.06.2012, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹72.00 Lacs to ₹100.00 Lacs and renew the Bank Guarantee of ₹20.00Lacs. To secure the loan, Defendant No.2 mortgaged his property(ies) (fully detailed in para No.3 of the application). Defendant No.3 and Dr. Imran Rahim s/o Sh. Abdul Rahim Bhat stood as guarantors. 2B. Again on 24.12.2014, at the request of the defendants, applicant bank granted the following facilities under relief package of Special Rehabilitation/Revival and relief package for the persons affected by the natural calamity in the J&K State – W.C.T.L. of ₹29.20Lacs, enhancement of W.C. Limit of ₹91.50Lacs and a term loan of ₹66.34Lacs. To secure the loan, Defendant No.2 mortgaged his property(ies) (fully detailed in para No.3 of the application). Defendant No.3 and Dr. Imran Rahim s/o Sh. Abdul Rahim Bhat stood as guarantors. 2C. On 30.12.2016, the defendants requested the bank to take over the C.C. Limit of ₹30.00 Lacs availed by the borrower concern from the State Bank of India through its Main Branch Srinagar. They also requested to enhance the C.C. Limit from ₹100.00 Lacs to ₹180.00 Lacs including the C.C. Limit of ₹30.00 Lacs availed from State Bank of India. To secure the enhanced facility, Defendant No.2 extended charge on the property mortgaged earlier (fully detailed in para No.3 of the application) and also mortgaged another property (fully detailed in para

no.14 of the plaint). Defendant No.3 and Dr. Imran Rahim s/o Sh. Abdul Rahim Bhat stood as guarantors. 2D. On 11.01.2017, at the request of defendant No.1, bank changed the guarantor from Dr. Imran Rahim s/o Sh. Abdul Rahim Bhat to defendant No.4. Defendant Nos.3 and 4 executed the guarantee deeds to secure the loan facilities. 2E. Again on 09.02.2017, at the request of the defendants, bank granted Term Loan of ₹12.47 Lacs under rehabilitation package to defendant no.1 through its proprietor defendant No.2 for Business purpose. To secure the loan, Defendant No.2 extended charge over the mortgaged property(ies) (fully detailed in para no.4 and para 14 of the plaint). 2F.

enhanced the existing C.C Limit from ₹180.00 Lacs to ₹500.00 Lacs. To secure the enhanced limit, Defendant No.2 extended charge over property(ies) mortgaged (fully detailed in para No.3 and 14 of the application). The enhanced limit was chargeable to interest @11.40% p.a. with monthly rests. Defendant Nos.3 and 4 stood as guarantors. 2G. Again on 14.03.2018, at the request of defendant No.1 through its proprietor defendant No.2, bank granted Vehicle loan of ₹20.00 Lacs to defendant No.1 through its proprietor defendant No.2 for Vehicle purpose. To secure the loan, Defendant No.2 hypothecated vehicle (fully detailed in para No.30 of the application). Defendant No.3 stood as guarantor for the vehicle loan. On 31.05.2020, a sum of ₹6,43,22,662.88p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

3. The Civil Court sent summonses to the defendants by registered post, which were duly served. The defendants did not put in appearance and were proceeded ex parte on 01.12.2021. After transfer of this suit, summonses were sent to the defendants again which were duly served. However, they did not put in appearance. Vide order dated 30.09.2024, they were proceeded ex parte.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Jaweed Ahmed Shera, Executive Law, along with the original loan and security documents.

5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loans under various schemes and on 31.05.2020, a sum of ₹6,43,22,662.88p was due.

6. Accordingly, the case of the bank for the recovery of ₹6,43,22,662.88p (Rupees Six Crores Forty Three Lacs Twenty Two Thousand Six Hundred Sixty Two and Paise Eighty Eight Only) ₹5,76,64,186.88p in C.C. Limit with interest @11.40% p.a. with monthly rests; ₹49,43,319/- in rehabilitation Term Loan with interest @9.50% p.a. with monthly rests; ₹17,15,157/- in Vehicle Loan with interest @10.70% p.a. with monthly rests from 29.06.2020, till the date of payment is hereby allowed with costs. The liability of defendant Nos. 1 to 4 would be joint and several for the amount due in C.C. Limit and Term Loan whereas the liability of defendant Nos.1 to 3 would be joint and several for the amount due in Car Loan. Bank can recover its dues by the sale of mortgaged property(ies) fully detailed in para Nos.3 and 14 of the application as well as from the personal movable and immovable property(ies) of the defendants accordingly.

7. Pending IAs, if any, stand disposed of.

8. Recovery Certificate be issued accordingly.

9. Parties are directed to appear before Recovery Officer on 10.08.2026, who is directed to distribute the sale proceeds of the mortgaged property and hypothecated assets as per the provisions of Section 19(20-AB) of the Act.

10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

Pronounced in the open court.

(A S Narang) Dated: 08.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA